GAWKER: We're Making A Ton Of Money From E-Commerce And We're Moving Into Sponsored Content

Gawker has promoted three long-term execs to senior management
positions (all deservingly so, based on our interactions with
them).

But more interesting are the positions themselves.

The former editor of Gawker site Jalopnik is moving to a new
"Content" division within the sales organization. This group will
write "branded content" and manage events and other functions.

Also interesting: Erin Pettigrew will now be managing what has
"accidentally" become a big business for Gawker:
E-commerce. Gawker generated a startling $70,000 in
affiliate fees from Amazon in December alone--without even trying.
So Erin's going to focus on this initiative.

Bottom line: These are more moves "beyond the banner ad"--the
advertising unit that has supported most content businesses like
Gawker's for the past decade.

Here's the memo...

---------- Forwarded message ----------
From: Nick Denton
Date: Thu, May 10, 2012 at 3:10 PM
Subject: New business initiatives at Gawker -- and the managers
who are going to run them
To: All Staf

We've been doing this nearly ten years. I'm not nearly ready to
retire yet -- or cash in. But we need to recognize there's a new
generation of management at Gawker Media. Today I'm going to talk
about Ray Wert, Erin Pettigrew and Scott Kidder.

.................................................................

CONTENT

We are creating a new content department within sales to be
headed by Ray. It will encompass the
existing creative services team and several additional functions:
primarily branded content, marketing communications and events.
Ray is the first editor to move to sales. (Ray's deputy Matt
Hardigree will take over Jalopnik.)

We all know the conventional wisdom: the days of the banner
advertisement are numbered. In two years, our primary offering to
marketers will be our discussion platform. Expanding on our
existing sponsored post program, Ray's team will recruit and
identify a client's spokespeople and advocates, advise them on
web etiquette and language, and help make their most persuasive
case.

Ever since the Cluetrain Manifesto, marketers have tried to adopt
a more human and conversational tone in their communications with
customers. The web may finally be ready to deliver on that
promise.

.................................................................

BUSINESS DEVELOPMENT

The second main growth area for Gawker Media is content-driven
commerce, ranging from affiliate marketing to in-page
transactions. A historical tidbit: the original business model
for Gizmodo was affiliate fees from purchases
of gadgets through Amazon. We didn't have the scale then to make
that work. We do now. In December we made $70,000 from Amazon.
Without really trying. No seriously, it was an accident.

E-commerce has been in limbo between sales and operations
departments -- and has accordingly never received full attention.
We will rectify that. Erin will
continue to work on the direct business, managing sales strategy,
marketing and operations. But in addition she will take
responsibility for business development, revenue partnerships and
e-commerce integration.

In particular, we will be looking for revenue growth from
affiliate partnerships and mobile. But Erin's mandate will be to
optimize our entire revenue mix.

.................................................................

MANAGEMENT

Joining Erin and Scott (about whom more in
a future email), Ray will be on the operating committee. You
know those Monday morning meetings in the red room or the glass
conference room upstairs? Yeah, well that's the operating
committee. Fancy name, eh? It's as close as we have to a
management group.

Beyond the boost
to three egos, these changes carry with them a few implications.
First, we expect that the banner ad business will be supplanted
by our content services and content-driven commerce. Second,
unlike most companies during this bubble, we are planning for an
independent existence for the next decade and beyond. And we
don't need to hire big names from outside to get us there; we
grow our talent in-house.